??? The Hotelier's Hub: 8th August 2023
Dawn Gribble
?? Marketing Audit Expert ????? | MIH | MCIM | Strategy & Market Intelligence for Growth
Industry Insights and Expert Advice for Hotels & Resorts
In this week's Hotelier's Hub Newsletter
? Grab a Coffee, and Let's Check-In
?? Demand for Business Travel is Back
The demand for business travel is rebounding, shifting towards purposeful travel that balances business needs with social and environmental considerations. Research by Accor indicates that business travel spending is down 24% from 2019 but is expected to return to pre-pandemic levels by 2024.?
57% of respondents anticipate an increase in their travel budget for 2024 compared to 2023. Sustainability is also a key concern, with carbon emissions as the top CSR priority for 54% of corporate clients. The trend of "bleisure" trips is gaining popularity across all demographics.
? What Travel Networking Looks Like in 2023?
The United States has introduced a digital visa waiver system that enables travellers to obtain electronic authorisation, simplifying the often complex visa application process. Following suit, the United Kingdom will launch its own UK ETA system in 2023, initially for testing with select countries and eventually expanding to an estimated 30 million visitors annually by 2024.?
With digital visa waivers and the introduction of the UK ETA system, networking and meeting new professionals has become more accessible, allowing individuals to find ideal candidates for employment, partnerships, or client acquisition. https://askdawn.link/PvdVNH???????
?? Ennismore to Charge $200 to Join its Loyalty Program
Ennismore, the hotel group behind brands like The Hoxton and SLS, has unveiled a new loyalty program called Dis-loyalty, following the trend of subscription-based loyalty programs.?
Unlike traditional hotel loyalty programs, Dis-loyalty asks members to pay $216 annually or $18 monthly. Members receive a range of benefits in return, such as 50% off stays at new hotels within the first three months of opening, 20% off the first stay in any Ennismore hotel, and 10% off return stays. Additionally, members get 10% off food and beverage at most Ennismore restaurants and enjoy a complimentary barista-made drink every day of the year, regardless of whether they are guests.?
Ennismore founder and Co-CEO Sharan Pasricha explains that the program aims to promote exploration and reward trying new places. The subscription model also includes a sense of community and provides discounts and perks to members. https://askdawn.link/4iip8t
???? Saudi Arabia’s Sovereign Wealth Fund Sets up Tourism Investment Company?
Saudi Arabia's Public Investment Fund (PIF) has formed the Saudi Tourism Investment Company (Asfar) to bolster the nation's tourism sector. Asfar's objectives include investing in new tourism projects, developing attractive destinations, and supporting the local tourism value chain.?
The company also aims to collaborate with the private sector, providing investment partnerships and creating an attractive environment for local suppliers, contractors, and small and medium-sized enterprises to contribute to tourism projects and destinations. https://askdawn.link/Z6eIHj?
?? OTA Insight Unveils the Impact of 'Taylor Swift Effect' on Global Hotel Markets
With over 130 concerts, Taylor Swift's Eras Tour has become 2023's highest-grossing musical tour and has caused notable shifts in the hospitality market. A recent analysis by OTA Insight reveals a 7.7% YoY increase in hotel prices leading up to Swift's concerts in the US, with even larger markets experiencing significant average pricing changes.?
The "Taylor Swift Effect" is not limited to the United States, as Mexico City has seen a surge in hotel volume following the tour announcement. It predicted that the influence will intensify in 2024 as the tour expands to Asia-Pacific and Europe.
Dave Collier, CRO of OTA Insight, explains, "This tour's influence extends far beyond the music world, sending ripples throughout the hospitality industry." The tour generates exceptional demand, illustrated by a $70 increase in hotel prices in Los Angeles during peak demand.?https://askdawn.link/VOPZD0?
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?? ?Amount Spent on Hotel Reservations 50% Up from Q2 2022 and 27% Up from Q1 2023?
The quarterly SpendSmart Travel Trends report by Emburse reveals notable changes in business travel spend and booking habits. In Q2 2023, car rental spend more than doubled compared to the previous year, while rental durations experienced a slight drop.?
Air travel saw substantial increases, with domestic flights up 22% and international flights up 92% year over year. Hotel reservations also showed significant growth, with a 50% increase in spend and an average stay of 4.18 nights. Overall, Q2 2023 witnessed significant increases in car rental, air travel, and hotel reservations compared to previous years.?https://askdawn.link/kujKFk?
??? Travellers Plan Multiple Trips in 2023
Travellers are planning multiple trips in 2023, with many using credit card reward points to help pay for them, according to the summer 2023 Global Rescue Travelers Sentiment and Safety Survey. Half the world's most experienced travellers plan four or more trips this year.?
The survey also reveals that 20% of respondents plan six or more trips, while 31% will take four to five leisure trips. Most respondents (64%) reported using credit card reward programs to offset travel expenses. Adventure tourism, such as African safaris, hiking trips, camping excursions, and motorcycle tours, is experiencing a surge in demand.?
?? Trivago Blames Profit Drop on Opting Out of New Google Ads Product
Trivago reported a 14% decrease in revenue, totalling $137 million in the second quarter of 2023, attributed to a decline in website traffic. In contrast, rival travel company Expedia, which opted to use Google's new property promotion ads, reported a record-breaking second quarter with a 6% increase in revenue.?
Trivago's Chief Financial Officer, Matthias Tillmann, explained that the decision to opt out of Google's ad product was due to the historically poor performance of Google hotel ads. Still, it resulted in a loss of traffic volumes. Consequently, Trivago has started running property promotion ads and will closely monitor their performance.
The company expressed concerns about its heavy reliance on search engines, notably Google, which promotes its own competing products and services.?
?? TripAdvisor’s Revenue Grows 18% as Consumers Seek Experiences
TripAdvisor announced its Q2 2023 earnings, revealing that its experience earnings surpassed its hotel earnings for the first time. The company reported an 18% overall revenue growth. CEO Matt Goldberg highlighted the stability in room rates, hotel quality, and length of stay and expressed optimism in serving travellers seeking experiences.?
The company redesigned attraction pages, exposing over 30% more travellers to bookable experiences. Viator, TripAdvisor's experiences marketplace, experienced a 59% YoY revenue increase, reaching $1.1 billion in gross booking value. TripAdvisor plans to leverage artificial intelligence (AI) and recently introduced an AI-powered travel itinerary generator to its travel guidance platform to drive revenue.?https://askdawn.link/XeYbb1?
???? Dubai Launches Sustainable Tourism Stamp??
Dubai's Department of Economy and Tourism (DET) has launched the 'Dubai Sustainable Tourism Stamp' initiative to recognise hotels that adhere to DET's 19 'Sustainability Requirements'. The stamp is intended to accelerate efforts towards achieving sustainability goals in the tourism sector and support the UAE's NetZero 2050 initiative.?
Hotels of all classifications can apply for the stamp by meeting the highest energy and water efficiency standards, waste management, and staff education. The stamp will feature a three-tier scheme: Gold, Silver, and Bronze.
Yousuf Lootah, Acting CEO of Corporate Strategy and Performance sector at DET, stated that the stamp sets a benchmark for excellence in environmental stewardship. It aims to encourage other establishments to adopt sustainable practices and promote the overall well-being of Dubai and the world. DET's sustainability strategy includes initiatives such as the Carbon Calculator and Dubai Can, which focus on reducing single-use plastic water bottles and promoting reusable bottles.???https://askdawn.link/xFLRog?
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